Fitch: PHH view negative

Fitch Ratings said it affirmed PHH Corp.'s long-term issuer default and senior unsecured debt ratings at BBB+ and short-term issuer default rating at F2 and removed all ratings from Rating Watch evolving and assigned a negative outlook.

The action follows PHH's announcement that it terminated the merger agreement with General Electric Capital Corp., removing ownership uncertainty.

Also reflected in the rating, the agency said, is the company's modest exposure to credit risk and ability to remain active in an illiquid secondary mortgage market.

Fitch said recent weakness in the company's mortgage unit is offset by the performance of its fleet leasing business.

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